Corporate debt restructuring cases to come under scanner

.....“There is a thought to scrutinise each case (and the respective company’s performance) which is under the CDR package,” Takru told Business Standard. The details of the timeframe and the mode of review are yet to be worked out. Takru’s message comes just two days after Reserve Bank of India Governor Raghuram Rajan sent a strong message to company promoters in his first media conference. Rajan said promoters did not have a divine right to stay in charge regardless of how badly they mismanage an enterprise, nor do they have the right to use the banking system to recapitalise their failed ventures. He has also asked Deputy Governor K C Chakrabarty to take a close look at the restructuring and recovery process and said next steps would be taken shortly.........

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